Wesbank forecasts vehicle sales will remain flat in 2015

South Africa’s new vehicle sales are anticipated to hit a ceiling, with year-on-year growth of only 0.87% expected in 2015. WesBank shared its forecast for the performance of the motor industry in 2015, at the recent SAGMJ WesBank Car Of The Year banquet.

“Growth of passenger car sales seem to have hit a sort of artificial ceiling,” says Simphiwe Nghona, executive head of WesBank’s motor division. “Any increase from current levels will only be possible in an environment where the GDP of the country expands at much higher levels.”

Sales in the Light Commercial Vehicle (LCV) segment are expected to see the highest growth, at 3%, as consumers substitute passenger cars with LCVs and businesses replace their fleets. Medium and heavy commercial vehicles sales – although a smaller contributor – should improve marginally, at 1.1%.

The current high sales volumes in the passenger car segment were achieved with exponential growth during the post-recession recovery period. But this year passenger car sales levels, which are still respectably high, will remain unchanged compared to 2014. Additionally, the lack of growth in this large segment will limit the overall impact of positive sales prospects in LCV and other commercial vehicle segments.

Prevailing low interest rates continue to drive sales confidence for both consumers and dealers. Marketing incentives from manufacturers are also helping to drive sales – these include trade-in assistance and cash-back packages, both of which help cover the shortfall when consumers choose to trade in vehicles. And while overall household debt levels are still at high levels, the last 18 months have seen a consistent decline – a sign that consumers are experiencing an easing of pressure on their budgets.

However, depreciation of the Rand continues to have an obvious and direct effect on the vehicle sales. Last year new car price inflation exceeded CPI, and after a small reprieve fuel prices are on the rise again. The knock-on economic effects of a weaker currency will lead to higher living costs, ultimately affecting consumers’ budgets and how soon – if at all – they will be in the market for a new car.

Buyers who do find themselves in the car market may also opt for a pre-owned vehicle. The increasing shift to used is a result of consumers knowing they can get better value for their money if they forego the luxury of a new car.

“Overall, our vehicle sales forecast for 2015 is characterised by a market in which the positive and negative factors even out,” said Nghona. “Notwithstanding the low expectation of growth, sustaining activity at these levels in current economic conditions would be a positive.”

In 2014 WesBank forecast that passenger vehicle sales would decline 2%, with total industry sales down by 0.6%. With weak performances in April and May, and industry sales down by 5.2% at the end of the first half, it looked unlikely for that forecast to be achieved. But a strong sales recovery in the second half of the year realigned the market. Passenger car sales ended at -2.46%, while the industry total for 2014 ended down 0.74%.

Wesbank forecasts vehicle sales will remain flat in 2015

Flat Tops are Back!

No, no do not start off heading to your nearest barbers, I don’t mean the hair cut of choice for the American Marine, but the truck cab kind. Flat tops were prime dog in the cab world back in the 80’s just before the space cabs, Toplines and Globetrotters took more than. As a boy developing up in the 80’s flat tops were my bread and butter, a flat prime 143, now when I imply flat prime I imply an original Toplines in the same statement, fundamentally anything pre being in a position to stand up and put your trousers on, which we all take for granted these days.

These days the norm (in Europe anyway) is a Topline, a Globetrotter XL, a Super Space Cab or even the awesome Gigaspace and I believe they have turn into so widespread spot the delight of a flat top cab has been totally forgotten……this is of course till our Dutch and European cousins have turned it into a retro trucking marvel! At the very best truck show in the globe this year, or Truckstar Festival to those who haven’t been, it was a pleasure to see the flat tops creating a strong come back. The difference now in 2014 is that the flat tops are almost certainly nevertheless slightly larger than the originals, but then again everything is bigger than it utilized to be (Mrs TB will disagree). Most of the trucks at Assen were Scania’s and a handful of Volvo’s. The Scania nonetheless comes in the original proper standard sleeper, I consider it is still known as an R-cab and also the seemingly a lot more popular Hi-line which according to the Scania web site, gives you an additional 30cm headroom over the standard R-cab sleeper.

When we all believe of Volvo’s new FH series we all immediately consider Globetrotter, Globetrotter, Globetrotter, how a lot of of you even realised you can still have a standard flat best sleeper can just like the delightful old F10’s and F12’s. Properly you can and the couple of examples you can see here are just great. Looking at them it is so straightforward to realise that we have forgotten about the flat prime. Then once more probably because the big cabs are so widespread location on sleeper cabbed trucks these days that we (it wasn’t just me who noticed them at Truckstar!) have been shocked back into realising how cool and retro the contemporary flat tops are. Then once again anything that has been customised by the Dutch looks cool and enviable to us English. Just a side note individuals, hardly any shiny alloy wheels, painted wheels is nonetheless the way forward.

By now you have realised that you want to be getting a flat leading to be in with the gang. It actually didn’t take a lot walking about at Assen for this to sink in, but to attain perfection it seems that you have to choose the chassis with a twin wheel tag. Sorry you should excuse me my European cousins, it’s not a twin wheel tag, you have to get in touch with it (please study in a Dutch accent!) how do you say “rear bogie lift”. Phrase of the show. A flat top cab with rear bogie lift is the greatest looking carsch you could see this year. Just to convince you once and for all just have a look at the red beastie under from Belgium. Scania fan or not you have to admit she looks rather effectively. Hi-line cab, painted wheels, roof rack, straight pipe exhausts, rear bogie lift and of course a retro (3 series in this case) sun visor. Why on earth is the 3 series visor not supplied by Scania as a standard match alternative??

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Flat Tops are Back!